Former council boss charged over alleged $1.3 million fraud

A former council worker has been arrested and charged with defrauding his former workplaces of more than $1 million through doctored invoices allegedly paid to himself rather than contractors.

Financial crimes squad detectives on Wednesday arrested 59-year-old Martin Thomas Dimec at Parramatta police station, where he was charged with 41 counts of dishonestly obtaining financial advantage by deception and misconduct as a public office holder.

Detectives allege Dimec authorised and approved fraudulent invoices for contractors while working in various positions over 12 years from 2012 to 2024. During that time, Dimec allegedly pocketed almost $1.3 million the councils believed was being paid to contractors for works the 59-year-old had approved using doctored invoices.

Police launched Strike Force Mullagh in May 2024 to investigate allegations of fraud and corruption at Dimec’s former workplaces, Goulburn Mulwaree Council, Shoalhaven City Council and Murrumbidgee Council.

Dimec was employed as a design engineer and later a construction superintendent at Goulburn Mulwaree Council from 2009 to 2016, when he resigned. From 2016 to 2020, he worked in several roles at Shoalhaven City Council, including as a project manager. In each of his roles, Dimec had autonomy to approve contractor payments.

Murrumbidgee Council became aware of the suspected frauds in December 2023, when an anomaly was flagged in its accounting department through a $35,000 invoice linked to Dimec. The council reported the suspected frauds to the Independent Commission Against Corruption (ICAC).

The council dismissed Dimec, who had been employed as the council’s infrastructure director for three years, in February 2024. Dimec allegedly defrauded the council of $33,000, which was repaid after his dismissal. At the time of his dismissal, Demic had allegedly approved an invoice for about $50,000, which the council did not pay.

Murrumbidgee Council Mayor Ruth McRae told this masthead the council had “acted swiftly” to investigate the suspected frauds. McRae said there were no concerns of widespread corruption within the council, which covers an area of almost 7000 square kilometres in the NSW Western Riverina.

“This was an individual acting by himself,” McRae alleged.

Dimec was refused police bail to appear in Parramatta Local Court on Thursday.

More to come

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